Downie Foods Recently Completed a 4-For-1 Stock Split

question 7

Multiple Choice

Downie Foods recently completed a 4-for-1 stock split.Prior to the split, its stock sold for $120 per share.If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?

• A) $28.43
• B) $29.93
• C) $31.50
• D) $33.08
• E) $34.73

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Definitions:

Conditioned Stimulus

Within classical conditioning, an initially neutral stimulus becomes linked with an unconditioned stimulus and ultimately elicits a conditioned response.

Neutral Stimulus

In conditioning, a stimulus that initially elicits no specific response other than focusing attention, which can eventually elicit a conditioned response when paired with an unconditioned stimulus.

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus, part of classical conditioning theory.

Unconditional Reinforcement

A form of reinforcement in operant conditioning that is given consistently every time a desired response is made.